BUS102 Week 1 - Introduction to Business PDF

Introduction to Business BUS102 Week 1 Prepared by Dr. Muhammad Nafea [email protected] NAME HELLO! MY NAME ABOUT IS Dr. Muhammad Nafea  Criteria Grade In-Class Worksheets 20% Mini-Cases 20% Mid...

Introduction to Business BUS102 Week 1 Prepared by Dr. Muhammad Nafea [email protected] NAME HELLO! MY NAME ABOUT IS Dr. Muhammad Nafea  Criteria Grade In-Class Worksheets 20% Mini-Cases 20% Mid-Term Exam 20% Final Exam 40% Total 100% Classroom Rules  Who among you has studied management in school? Why did you want to study business? Chapter 1 Meeting the Challenges of Today’s Dynamic Business Environment Businesses What is a business and what is its importance?  What is a business and what is its importance? Business is any activity that seeks profit by providing goods and services to others.  What is a business and what is its importance? Business is any activity that seeks profit by providing goods and services to others. What is a business and what is its importance? But!!! Why is business important?  What is a business and what is its importance? 1. Business can provide wealth and a high quality of life for almost Let me everyone. guess! 2. Entrepreneurs and business men may not only become wealthy themselves but also provide employment for other people. 3. Businesses are a part of an economic system that helps to create a higher standard of living and quality of life for everyone.  What is a business and what is its importance? As a result for Operating Businesses a country can achieve two Indicators: Standard of living of a country: refers to the amount of goods and services people can buy with the money they have. Quality of life of a country: refers to the general well-being welfare of a society in terms of freedom, clean natural environment, education, health care, safety, leisure time, and everything else that leads to satisfaction and joy. Non-Profit Organizations Which one of these entities is considered to be business?  Non-Profit Organizations A nonprofit organization is an organization whose goals do not include making a personal profit for its owners such as governmental agencies, public schools, and charities. They still need to learn business skills such as information management, leadership, marketing, and financial management. Why?  Non-Profit Organizations A nonprofit organization is an organization whose goals do not include making a personal profit for its owners such as governmental agencies, public schools, and charities. They still need to learn business skills such as information management, leadership, marketing, and financial management. Nonprofit organizations often do strive for financial gains, but they use them to meet their social, charitable, or educational goals rather than for  Entrepreneurship and the Entrepreneur An entrepreneur is a person who risks time and money to start and manage a business. Okhtein Aya and Mounaz Halan – Okhtein’s SWVL Founder Zacks Mohamed Diaa Hassan – Hassan Abou Mostafa Kandil – Aboulnaga Dea Bags’ Zekry – Zack’s SWVL’s Founder Nagaty– Halan &  Entrepreneurship and the Entrepreneur Corporate Downsizing- which is eliminating (laying off) some workers, managers, or departments in order to make a business more efficient- is one of the major opportunities contributing to the increasing number of entrepreneurs. SWVL Downsizing: when they decide to lay-off about 32% of their headcount this year.  Matching Risk With Profit Businessmen should do research to find the right balance between risk and profit. Profit: is money a business earns above and beyond what it spends for salaries, expenses, and other costs. (profit=revenues-expenses) Loss: occurs when a business’s costs and expenses are more than its revenue. Risk: is the chance you take of losing time and money on a business that may not prove profitable.  The Role of the Factors of Production in The Creating Wealth factors of production are the resources businesses use to create wealth and they are: 1. Land (and other natural resources) 2. Labors (workers) 3. Capital (e.g. money, machines, tools, and buildings) 4. Entrepreneurship 5. Knowledge  Business Environment Ma Sometimes called the macro- environment Economic Forces c Business Environment is Social, Demographic and Cultural Forces ro composed of those factors Political - Legal Forces En and forces outside the control Technological Forces vir of the company that may Competitive Environment o affect the ability of the nm business to success and survive. en Organization t The five key environmental factors that are critical to the success of business are:  Business Environment The five key environmental factors that are critical to the success of business are: 1. Economic environment 2. Technological environment 3. Competitive environment 4. Social environment 5. Global business environment  1- The Economic Environment People are willing to take the risk of starting businesses if they feel that the risk is not too great. Government can lessen the risk of starting a business thereby increasing entrepreneurship and wealth by: 1. Allowing private ownership of business 2. Passing laws that enable businesspeople to write contracts that are enforceable in court 3. Establish a tradable currency 4. Eliminate corruption in business and government 5. Keep taxes and regulations to a minimum  2- The Technological Environment The internet: which is the network of computer and telecommunication equipment that links people throughout that world into one unified communications system. E-Commerce: using the internet for buying and selling (using credit cards). A database: which is an electronic storage file where information is kept, can be used to store vast amounts of information about customers and thus responding to the needs and wants of the customers. Electronic data interchange: involves data from bar codes being sent directly to manufacturers, which then replace the items quickly.  3- The Competitive Environment Making quality products is not enough to stay competitive in world markets. In order to remain competitive in the market you have to: 1. Compete by speed: the faster the service the more competitive you are in the market. 2. Compete by delighting the customers: successful companies must listen to customers to determine their wants and needs and then adjust their products, policies, and practices to meet these demands.  3- The Competitive Environment 3. Compete by meeting the needs of the community: companies should ensure that all stakeholders’ needs are satisfied. (stakeholders are all the people who are affected by the policies and activities of an organization such as customers, employees, stockholders, suppliers….Etc.) 4. Compete by restructuring and meeting the needs of employees: to meet the needs of customers, firms must give their front-line workers more freedom to respond quickly to customer requests, and this is called Empowerment. 5. Compete by concern for the natural environment: environmental issues must be a major focus of everyone.  4- The Social Environment Demography: is the statistical study of the human population to learn its size, density, and characteristics. Multiculturalism: is the process of optimizing the contributions of people from different cultures. Two-income family: many employers provide child care benefits for their employees. Also some companies are increasing the number of part-time workers by allowing workers to stay home and send in their work by telecommunications, a practice known as Telecommuting.  5-The Global Environment The global environment of business affects all other environmental influences.  The number one global environmental change today is the growth of international competition and the increase in free trade among nations which in turn lead to increasing productivity- which is the volume of goods and services that one worker can produce. Thank You